It’s not uncommon for business owners to get swept up in the nitty-gritty of daily operations, but by doing so, you could wind up neglecting certain areas that could be saving, or even making, you more money in the long-term. One of the most obvious examples of this is when businesses finally realize that its time to begin implementing fixed asset tracking tools. This process will not only help you get to know the depth of your business’ fixed assets better, such as buildings, equipment, land, and trademarks, it will also give you a more thorough idea of the true value it holds.
Whether you are new to the concept of fixed asset tracking or you’re searching for a more comprehensive fixed asset tracking tool to the one you’re currently using, it’s important that you get acquainted with the most effective ways to go about the process. Here are some helpful tips to get you started on your business’ fixed asset tracking:
- Choose Your Fixed Asset Tracking Solution
- Don’t Mistake Fixed Asset Tracking for Inventory Tracking
- Create a Fixed Asset Database
- Take a Closer Look at the Performance of Your Fixed Assets
Read on to learn how building your awareness of your business’ fixed asset tracking will help boost your efficiency and bottom line.
Choose Your Fixed Asset Tracking Solution
We are now living in a day in age in which the tracking of your business’ fixed assets can be as simple as investing in solutions, such as a robust asset tracking system, GPS devices for vehicles and moveable equipment, barcodes, and scanners. If you utilize tools like these, you can rest assured knowing that you are always receiving an accurate data reading, devoid of human error or theft.
You might need to part with some capital in order to integrate a customized system that fits the needs of your unique business, but these automated systems are put in place to ultimately save you funds in the long term. There’s no wonder why more and more businesses are using automated solutions to obtain accurate readings of their fixed assets.
Don’t Mistake Fixed Asset Tracking for Inventory Management
One of the biggest mistakes that businesses make when it comes to the subject of supply chain management is that they confuse the practices of fixed asset tracking with inventory management. Because both disciplines are entirely distinct, costly difficulties are likely to occur if you analyze them using the same exact method.
Just remember, fixed asset tracking concerns the tangible and intangible items that your company already owns outright. These are the vehicles, buildings, trademarks, etc., that can potentially make you even more money if you choose to rent or sell them in the future. Your fixed assets also play a big part in the way in which your company might be valued. On the other hand, inventory management concerns only the items that you have produced to sell. As you can see, these are two entirely different sets of data that hold two entirely different sets of goals.
Create a Fixed Asset Database
Whether or not you are in the position to invest capital in an automated asset tracking solution, there’s nothing stopping you from creating an asset database that conforms to the special needs of your business.
Start by including each and every one of your fixed assets in a database of your choosing. Next to each one, add spaces that require your employees to make frequent, recorded notes on the details of each asset, including changes in condition, general descriptions, as well as benchmarks for particularly sensitive assets. Having this updated database on-hand at all times makes for smoother budgetary decisions, as well as audits.
Take a Closer Look at the Performance of Your Fixed Assets
For a growing business, holding on to fixed assets can either be a help or a hindrance. To experience seamless progress, whether it be in an up or downswing, take an honest look at the balance costs, opportunities, and risks associated with what you own.
Remember, although an asset isn’t “fixed” unless you plan on keeping it for a year or more, each and every fixed asset has a life cycle of its very own. Perhaps you invested in a piece of pricey equipment five years ago that was necessary at the time; maybe your business has gotten use out of it, but now, its old technology is either slowing down the pace of your production–or is not being used at all. That is an example of a fixed asset that is at the end of its life cycle.
As a business owner or manager, it may be difficult to recognize these eccentricities in your day-to-day, but once you have a fixed asset tracking system put into place, the truth behind the kinks in your productivity will become much clearer.
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